Black Square

About Black Square

Black Square is a hard money lender based in Salt Lake City, UT providing funding all throughout the United States. They offer lending solutions for a variety of situations, including bridge loans, fix and flip hard money loans, and loans for rental properties. Their loan guidelines are versatile, including loan amounts starting at $75,000 and rates starting at 8.75% . They primarily provide loans for single family and multi family residences.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: National

Licenses: Licensed under the Utah Division of Real Estate, NMLS 1185046, the California Bureau of Real Estate 01862485, NMLS 1185046, and the Oregon Division of Financial Regulation, License No. 5456, NMLS 1185046

Lending Guidelines for Black Square

Below are the general loan guidelines published on the Black Square website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Black Square.

Loan Example 1

Angelia takes a hard money loan from Black Square in order to rehab a townhouse to flip in Baton Rouge, LA. The list price of the house is $200,000. The terms of the note include a 60% loan-to-value (LTV), so she must contribute 40% of the price as cash to closing, making the principle note amount $120,000. The parameters of the loan dictate a 13% note for 12 months. They also require a 5 point origination fee, which will also be paid when the property closes.

By the terms of the note, Angelia will need to pay a $6,000 origination fee in addition to 40% of the sales price, or $80,000, based on the 60% LTV. The lender will collect $1,300 in monthly interest payments from the borrower. This is calculated by taking the full loan amount of $120,000, multiplying that by the 13% interest rate, and then dividing that number by 12. At the expiration of the note, she sells the renovated house for $250,000. After subtracting the $15,600 in interest expenses ($1,300 times 12 months), the $6,000 origination fee, the $120,000 principle amount on the note, and the $80,000 she brought to closing, she will make a gross profit of $28,400 ($250,000 sales price minus $221,600 in costs). This profit would then be reduced by any renovation costs paid by Angelia.

Loan Example 2

Black Square makes a fix and flip loan to Katie for a remodeling project in Scottsdale, AZ. The loan dictates the following:

$180,000 purchase price
60% loan to value (LTV)
18 month term
11% rate of interest
4% origination fee

If Katie succeeds in her goal of a $225,000 sales price, the outcome of the deal would be the following:

$225,000 sales price
- $108,000 loan principle (60% LTV)
- $72,000 cash paid at closing (40% on 60% LTV)
- $4,320 origination fee (4% of the $108,000 principle)
- $17,820 total interest paid (18 months x 11% interest)
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= $22,860 gross profit (does not include taxes or rehab costs)

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